Parsippany-based B&G Foods has bought the frozen vegetable manufacturing operations of Growers Express, a licensee in production of Green Giant vegetable products.
Terms of the deal were not disclosed.
The transaction includes equipment, inventory and a sublease for a portion of a plant in Yuma, Arizona, that processes value-added vegetable products, primarily Green Giant Riced Veggies and Green Giant Veggie Spirals, and a lease for a warehouse facility in San Luis, Arizona. Approximately 155 employees will transfer to B&G Foods.
B&G Foods also repurchased the master license agreement for certain Green Giant Fresh vegetable products and will assume responsibility for the administration of related sublicense agreements.
“By increasing the variety and volume of Green Giant frozen vegetable products produced at internal manufacturing facilities, we expect to reduce inefficiencies, reduce costs and reduce supply chain risk for certain Green Giant frozen products,” CEO Casey Keller said in a statement.
Founded in 1987, Growers Express is the primary licensee of the Green Giant Fresh brand of packaged vegetables.
B&G Foods funded the acquisition and related fees and expenses with cash on hand and revolving loans under its existing credit facility. The acquisition is expected to result in a slight reduction to B&G Foods’ consolidated leverage ratio.